Question: Pension data for Barry Financial Services Inc, include the following: Discount rate, 7% Expected return on plan assets, 10% Actual return on plan assets, 9%

Pension data for Barry Financial Services Inc, include the following:

Discount rate, 7%

Expected return on plan assets, 10%

Actual return on plan assets, 9%

Service cost, 2013: $310

Projected benefit obligation 2,330

Accumulated benefit obligation 2,000

Plan assets (fair value) 2,400

Prior service cost-AOCI (2013 amortization, $25) 325

Net gain-AOCI (2013 amortization, $6) 330

There were no changes in actuarial assumptions, December 31, 2013.

Cash contributions to pension fund, December 31, 2013 245

Benefit payments to retirees, December 31, 2013 270

Required:

1. Determine pension expense for 2013.

2. Prepare the journal entries to record pension expense, gains and losses (if any), funding, and retiree benefits for 2013.

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